If you’ve suffered property damage or loss and need to file an insurance claim, you may be wondering whether to hire a public adjuster or rely solely on your insurance company’s appointed claims adjuster. There are important differences between these two types of adjusters regarding their roles, allegiances, timing of involvement, and compensation structures. Understanding these key distinctions will help you make an informed decision when starting the claims process after an incident.
What is an Insurance Adjuster?
An insurance adjuster is a claims specialist appointed and compensated directly by your insurance company. Insurance adjusters work for the insurer to investigate, assess, and settle policyholders’ claims of loss or damages from events like fires, storms, theft, vandalism, accidents, etc. Most insurance companies keep adjusters on staff, while others contract with independent adjusting firms. Either way, the adjuster handling your claim is answerable to the insurance company, not you.
The insurance adjuster’s primary goal is to settle claims in a way that minimizes costs for their employer (the insurer). They will inspect your property, review your policy, determine if the damage is covered, and analyze the amount of compensation you’re owed based on your coverage limits. This dollar figure that the adjuster comes up with is the company’s initial settlement offer.
Role of an Insurance Adjuster
Common responsibilities of insurance adjusters include:
- Investigating claim details, scopes of damage, and eligibility factors
- Determining applicable coverages for losses
- Estimating repair/replacement costs
- Negotiating claim settlements
- Authorizing or denying payments on claims
- Managing paperwork and filings related to the claims process
- Detecting and preventing fraudulent claims
The insurance adjuster keeps the company’s best financial interests in mind during every phase of your claim. Their role is to facilitate an outcome that costs the insurance provider as little as possible while still meeting the basic contractual requirements.
What is a Public Adjuster?
A public adjuster is a licensed professional who works directly on behalf of a policyholder (rather than the insurer) to help maximize and expedite insurance claim payments. As advocates for the customer, they oversee the entire claims process to make sure you receive fair compensation at or above the amount you’re entitled to from your policy.
Public adjusters are independent contractors that charge service fees or percentages of claim payouts, although some states prohibit fees based on claim settlement amounts. Their allegiances lie 100% with policyholders, not insurance companies. In essence, public adjusters level the playing field against the inherent imbalance of insurers using their own adjusters.
How Public Adjusters Differ from Insurance Adjusters
There are some major ways that public adjusters diverge from standard insurance adjusters:
Timing of Involvement
Public adjusters can get involved immediately after you suffer property damage or loss. They frequently offer 24/7 services. In contrast, you must first alert the insurance company of your intent to file a claim before an assigned adjuster contacts you. This lag time allows more damage to accrue and evidence to disappear.
Primary Interests and Allegiances
As detailed above, insurance adjusters serve the interests of the carrier above yours as a policyholder. Public adjusters only have one priority: maximizing your claim settlement in accordance with your coverage entitlements.
Assessment and Documentation
By starting work quickly, public adjusters can conduct more thorough assessments of damage and losses. They take exhaustive photographs/video, research replacement costs extensively, and prepare detailed claim reports supported by documentation that insurance carriers cannot easily refute.
Scope Expertise
Insurance adjusters handle all varieties of property claims, while public adjusters focus specifically on property damage, which makes them experts regarding assessment scopes, local vendors/prices, building codes, etc. This deep expertise lets them identify more avenues for reimbursement.
Negotiation Advantages
Rather than accepting the insurer’s initial settlement offer, a public adjuster professionally negotiates on the policyholder’s behalf to garner an optimal claim settlement. The adjuster’s expertise and impartiality equip them to stand toe-to-toe with even the most seasoned insurance adjusters during these discussions.
Oversight of Process
Public adjusters oversee everything from damage assessments and documenting inventory to filing paperwork and follow-ups. Their project management minimizes hassles for struggling property owners throughout the claims process.
Weighing the Pros and Cons
Still deciding between hiring a public adjuster or not? Consider these general pros and cons of bringing a public adjuster on board:
Pros
- Higher settlement amounts
- Faster claims processing and settlements
- Less demands on your time
- Reduced claim-filing stresses
- Personal guidance from policy experts
- Contractors vetted and invoices audited
Cons
- Public adjuster fees lowering your net payout (But their services typically raise your total settlement enough to more than offset their modest fees)
- A few dishonest public adjusters exploiting clients’ losses
- Potential irritation caused to insurers
As you can see, there are lots of advantages to public adjusters that usually make the costs worthwhile through bigger and faster settlements. Just vet your selected professional thoroughly via certifications, client references, reviews, etc.
Who hires an insurance adjuster, and who hires a public adjuster?
Insurance companies are responsible for hiring insurance adjusters to handle claims. They typically keep adjusters on staff as employees or contract with independent adjusting firms. Either way, the insurance company chooses and pays the adjuster.
In contrast, policyholders who have suffered property damage or loss are the ones that seek out and hire public adjusters. Public adjusters work directly for the customer to advocate for their best interests when filing insurance claims.
Are public adjusters involved in the claims process from the beginning?
Yes, one key difference with public adjusters is that they can get fully involved right away at the start of a claim. Public adjusting firms frequently offer 24/7 services immediately after disasters or other insured incidents occur. This allows them to initiate assessments, documentation, temporary repairs and more without waiting. In contrast, policyholders must first alert the insurance company and go through a lag time before getting assigned an claims adjuster.
Putting Policyholders First
At the end of the day, public insurance adjusters distinguish themselves by putting policyholders ahead of insurers. They level the claims process playing field through independent expertise that translates to maximum, expedited settlements for people suffering property loss and damages.
Get the Expert Claims Representation You Deserve
If you’ve suffered property damage, don’t leave money on the table by relying solely on the insurance company’s adjuster. Contact the professional public adjusters at CCA Public Adjusters to start the claims process off on the right foot.
Reach out at (407) 516-7277 or email us at info@ccauaa.com to discuss your situation in a free consultation. Our public insurance claims experts will answer all your questions so you can make an informed decision moving forward. We’re here to help Florida families and business owners get every penny they deserve from insurers efficiently and hassle-free after accidents, storms, fires, and other losses.